Türkiye Azerbaijan Economic Relations: Bilateral Revealed Comparative Advantage Perspective

Authors : Atiye Beyhan Akay

Pages : 225-237

Doi:10.30586/pek.1348171

View : 117 | Download : 161

Publication Date : 2023-10-28

Article Type : Research Paper

Abstract :Türkiye is attempting to strengthen its economic relations through regional and global cooperations. Türkiye desires to boost trade volume, diversify trade markets, and become a major player in the area through bilateral or multilateral collaboration with South Caucasus and Central Asian nations, with whom it shares linguistic and cultural affinities. After Azerbaijan declared its independence in 1991, Türkiye established economic relations with Azerbaijan and signed a Preferential Trade Agreement in 2020, in order to take the cooperation to a higher level. The economic relations of the two nations are analyzed in terms of international trade in this study, with the goal of increasing bilateral trade volume and liberalizing trade. Countries are assessed using fundamental macroeconomic variables, and their comparative advantages in bilateral trade are established. Using the bilateral revealed comparative advantage index, the study examined the nations\' comparative advantages and export shares by product group. The findings of the study allow for a comparison of product groupings with comparative advantage with the products covered by the Preferential Trade Agreement, as well as a sense of the agreement\'s potential to enhance trade volume.
Keywords : Türkiye, Azerbaycan, İki taraflı açıklanmış karşılaştırmalı üstünlükler endeksi